Minimization of bullwhip effect in face of different inventory policy

There are four major causes of bullwhip effect – demand forecast updating, order batching, price fluctuation, and rationing and Shortage Gaming (Lee, 1997), which can be measured using the concept of Bullwhip Effect Index (BE) (Dejonckheere, 2003; Sterman, 1989). This report will focus on the first...

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Main Author: Arif Adriyanto
Other Authors: School of Mechanical and Aerospace Engineering
Format: Final Year Project
Language:English
Published: 2013
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Online Access:http://hdl.handle.net/10356/54042
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-540422019-12-10T11:28:04Z Minimization of bullwhip effect in face of different inventory policy Arif Adriyanto School of Mechanical and Aerospace Engineering A*STAR Singapore Institute of Manufacturing Technology DRNTU::Engineering There are four major causes of bullwhip effect – demand forecast updating, order batching, price fluctuation, and rationing and Shortage Gaming (Lee, 1997), which can be measured using the concept of Bullwhip Effect Index (BE) (Dejonckheere, 2003; Sterman, 1989). This report will focus on the first two causes – demand forecast updating and order batching – and adding two inventory policies into the analysis. The reason of adding two inventory policies – (s,Q) Policy and (R,S) Policy – is because each inventory policy has different parameters to trigger the ordering signal, which result in different ordering frequency and quantity. Comparisons between these inventory models are established before the analysis is carried out. Finally, discussion to obtain the minimum bullwhip effect from combination of the inventory policies and, so, it can be used to optimize supply chain performance. This FYP measures the impact of different parameters in (s,Q) Policy and (R,S) Policy with different ordering policy combination in 1 Manufacturer and 2 Distribution Channels network to the bullwhip effect by measuring the BE value. The result shows that the optimum combination will always occur in (s,Q) Policy, when the ordering quantity (Q) is equals to the average demand (μ). The same result also held in 1 Manufacturer and 2 Distribution Channels network, where two (s,Q) Policies with Q equals to μ. Bachelor of Engineering (Mechanical Engineering) 2013-06-12T01:29:35Z 2013-06-12T01:29:35Z 2013 2013 Final Year Project (FYP) http://hdl.handle.net/10356/54042 en Nanyang Technological University 67 p. application/msword
institution Nanyang Technological University
building NTU Library
country Singapore
collection DR-NTU
language English
topic DRNTU::Engineering
spellingShingle DRNTU::Engineering
Arif Adriyanto
Minimization of bullwhip effect in face of different inventory policy
description There are four major causes of bullwhip effect – demand forecast updating, order batching, price fluctuation, and rationing and Shortage Gaming (Lee, 1997), which can be measured using the concept of Bullwhip Effect Index (BE) (Dejonckheere, 2003; Sterman, 1989). This report will focus on the first two causes – demand forecast updating and order batching – and adding two inventory policies into the analysis. The reason of adding two inventory policies – (s,Q) Policy and (R,S) Policy – is because each inventory policy has different parameters to trigger the ordering signal, which result in different ordering frequency and quantity. Comparisons between these inventory models are established before the analysis is carried out. Finally, discussion to obtain the minimum bullwhip effect from combination of the inventory policies and, so, it can be used to optimize supply chain performance. This FYP measures the impact of different parameters in (s,Q) Policy and (R,S) Policy with different ordering policy combination in 1 Manufacturer and 2 Distribution Channels network to the bullwhip effect by measuring the BE value. The result shows that the optimum combination will always occur in (s,Q) Policy, when the ordering quantity (Q) is equals to the average demand (μ). The same result also held in 1 Manufacturer and 2 Distribution Channels network, where two (s,Q) Policies with Q equals to μ.
author2 School of Mechanical and Aerospace Engineering
author_facet School of Mechanical and Aerospace Engineering
Arif Adriyanto
format Final Year Project
author Arif Adriyanto
author_sort Arif Adriyanto
title Minimization of bullwhip effect in face of different inventory policy
title_short Minimization of bullwhip effect in face of different inventory policy
title_full Minimization of bullwhip effect in face of different inventory policy
title_fullStr Minimization of bullwhip effect in face of different inventory policy
title_full_unstemmed Minimization of bullwhip effect in face of different inventory policy
title_sort minimization of bullwhip effect in face of different inventory policy
publishDate 2013
url http://hdl.handle.net/10356/54042
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